Conference Notes from RMB: Unlocking the Potential II
In the first installment of our RMB thought leadership series, we we explored the current status of Chinese capital account liberalisation, aspects of RMB internationalisation to date, and its effect on Australian markets.
At the second in our RMB Thought Leadership conference series in Melbourne, noting the changing landscape both for Chinese investors and global portfolio managers, we examined the status of Chinese capital account liberalisation in the context of investment flows between China and Australia.
- Chinese policymakers remain committed to an accelerated pace of capital account reform, which cannot help but affect global portfolios.
- The IMF’s inclusion of the RMB in its SDR basket is a catalytic factor for global asset allocation.
- The development of the Chinese bond and credit markets represent both a significant challenge and opportunity.
- It is natural to expect net outflows from surplus-holding China into external debtor Australia but there is ample opportunity (and benefit) from two-way flow.
- The accelerated pace of Chinese capital reforms may bring “quick wins” for Australian investors and financial services as reform progresses.
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